Recognition of the Jewish state is actually very important. If the Palestinians really wanted only to be rid of Israel's rule and establish a state in the West Bank and Gaza Strip, if they were yearning for their own state, they would gladly recognize Israel as a Jewish state, to get rid of the Israelis. The fact that they don't proves that they still harbor delusions about the "right of return" and the endgame of a single Arab state encompassing all of historic Palestine. They are unwilling to sign an agreement that nullifies it.
To put it quite simply, recognizing a Jewish state means that the conflict, over, and there will no more demands. And that's why Olmert demanded the same thing.
Well, Israel is releasing some terrorist prisoners in exchange. Also, many of these "squatter" homes are built in Jerusalem, which Israel has made clear it will not divide (the Arab residents of the city largely don't want to be transferred to Palestinian sovereignty either, and a divided city is usually a mess, especially economically), and the settlement blocs that it intends to keep. Even the Palestinians say that Israel can keep these areas if it commits to land swaps. I don't see what the problem is here.
Recognition of the Jewish state is actually very important. If the Palestinians really wanted only to be rid of Israel's rule and establish a state in the West Bank and Gaza Strip, if they were yearning for their own state, they would gladly recognize Israel as a Jewish state, to get rid of the Israelis. The fact that they don't proves that they still harbor delusions about the "right of return" and the endgame of a single Arab state encompassing all of historic Palestine. They are unwilling to sign an agreement that nullifies it.
To put it quite simply, recognizing a Jewish state means that the conflict, over, and there will no more demands. And that's why Olmert demanded the same thing.
Well, Israel is releasing some terrorist prisoners in exchange. Also, many of these "squatter" homes are built in Jerusalem, which Israel has made clear it will not divide (the Arab residents of the city largely don't want to be transferred to Palestinian sovereignty either, and a divided city is usually a mess, especially economically), and the settlement blocs that it intends to keep. Even the Palestinians say that Israel can keep these areas if it commits to land swaps. I don't see what the problem is here.